June 14, 2022|Mental Health

High inflation rates disproportionately hurt low-to-middle income families and individuals, leaving them vulnerable to food insecurity, debt accumulation, and the erosion of savings accounts or contingency funds.

This phenomenon is often referred to as inflation stress, and it’s taking its toll on Canadians. Recently, a study found that 1 in every 3 Canadians feels their financial stress is leading to anxiety, depression or mental health challenges, substantiating the connection between inflation and mental health.

There are plenty of other statistics that validate this connection as well, including:

• 49 per cent of Canadians now report finding it difficult or very difficult to feed their families due to rising food prices
• 36 per cent report being in worse financial shape than one year ago
• Canadians in the lowest income group are 3-4X more likely than those in the highest income group to report poor mental health
• One-quarter (24%) of Canadians say their household debt causes them major stress
• 53 per cent say they won’t be able to keep up with the rising cost of living

These numbers are a testament to the severity of inflation stress our nation is currently grappling with. But how can Canadians tell if the cost of living crisis is making them mentally ill? What are the warning signs? And what can be done to cope with mental health concerns like anxiety and depression that are rooted in money-related stress?

Let’s take a closer look.

How Does Inflation Affect Mental Health?

1. Overworking and Burnout

Individuals who are experiencing financial insecurity have to work more hours just to make ends meet, sometimes working multiple jobs, or working 7 days a week to get ahead. This puts them at an increased risk for burnout, which causes fatigue, exhaustion, anxiety, depression, difficulty concentrating, and a whole host of other health issues.

2. Chronic Stress

Financial insecurity takes its toll on every aspect of a person’s life. It becomes more difficult to afford basic necessities like food and gas, it can become a barrier for work (if the individual is no longer able to afford to keep their car on the road, for example), and it often leads to interpersonal problems between couples or family members. This ripple effect is a risk factor for chronic stress, which is associated with a wide range of both physical and mental health problems, including heart disease, diabetes, high blood pressure, anxiety, depression, and substance abuse.

3. Fewer Resources

Inflation stress also makes it more difficult for Canadians to afford or take advantage of mental health treatment programs or resources. Services like counselling sessions, inpatient or residential mental health treatment programs, or addiction treatment programs, all require an individual to not only pay in many cases but to take time away from work and other obligations, which may not be fiscally possible for a person who is experiencing financial insecurity.

What Are The Warning Signs of Inflation Stress?

Now that we’ve clarified the mental health impact of inflation, it’s important for anyone struggling with inflation stress to know the signs of mental health decline. These symptoms may indicate you are unwell:

• Difficulties sleeping
• Excessive tiredness 
• Feeling guilty about purchasing non-essential items 
• Feeling flustered or panicked when you think about money
• A pessimistic or hopeless outlook on life
• Frequent headaches
• Feeling stressed, angry, or irritated
• Isolating yourself from others 
• Relying on unhealthy coping strategies, such as drinking, gambling, or avoidance

What Can Be Done to Cope With Inflation Stress?

1. Connecting With Charitable Organizations

There are countless non-profit organizations across the country that provide relief for those experiencing financial insecurity. Food Banks Canada, E4C Alberta, Nellies Shelter, and The Salvation Army are just a few of our favorite examples. 

Many non-profit organizations provide:

• One-time rental payment assistance (for those who can not afford their rent)
• Food assistance
• Transportation assistance
• Affordable childcare
• Utility assistance
• Debt relief & financial education

And much more. We recommend connecting with your local United Way for more information about which non-profit programs are available to you.

2. Applying for the Emergency Needs Allowance

The Government of Alberta offers a one-time allowance to those who are facing an unexpected emergency. The allowance can be granted for food, medication, housing, utilities, and more. Other provinces have similar programs, so we encourage you to contact your provincial income support office for assistance.

3. Speaking to a Financial Advisor

Financial advisors bring a wealth of professional knowledge and experience to the table, helping people tackle their debt, better manage their finances, and plan for the future. They can also connect you with credit counseling services and valuable resources, so it’s always a good idea to meet with one if you are struggling financially.

And, most importantly, you must learn to release feelings of shame or self-contempt. The way we speak to ourselves about our challenges in life has a profound effect on our ability to overcome them. Remember to practice positive self-talk and be patient with yourself. Financial problems are often beyond our control, especially if they are a result of rising inflation rates. You aren’t alone, there is help available, and these tough times won’t last forever.